- AUD / USD falls to a new 2021 low on Friday.
- The US dollar DXY index remains in a consolidation phase slightly below 92.00.
- AUD / USD is down more than 2% on the week.
The pair AUD/USD has suffered strong downward pressure in the second half of the week, suffering heavy losses on Wednesday and Thursday despite the upbeat Australian jobs report.
During the Asian session on Friday, the pair has extended its decline and touched its 2021 low at 0.7511 before rebounding. At the time of writing, the pair is down 0.33% on the day, trading at 0.7528. In the absence of fundamental catalysts, the pair’s recent rebound appears to be a technical correction from the latest decline. This week, AUD / USD is still on track to lose more than 2%.
DXY index remains below 92.00
The broad strength of the USD following the optimistic shift observed in the FOMC’s Summary of Economic Projections it continues to dominate the financial markets before the weekend.
The US dollar DXY index, which measures the strength of the dollar against a basket of major currencies, touched its highest level in more than two months at 92.07 earlier in the day, but appears to have entered a consolidation phase. At the moment, the DXY index is flat at 91.90.
There will be no high-level macro data release on the US economic calendar on Friday and the AUD / USD is likely to continue fluctuating within a tight range around the 2021 lows.
AUD / USD technical levels
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